Anyone with a bad credit score may be unable to get a lower interest rate on a credit card and typically, using a credit card is one of the best ways to increase your credit score. It’s for this reason that many people turn to a secured credit card in order to improve their credit history and raise their credit score.
Using a secured credit card responsibly is going to be vital for anyone looking to raise their credit score. Saving, budgeting, and making purchases that are necessary or purchases where you have saved up money to pay them off quickly when the bill comes is going to be the best way to use a secure credit card.
Usually a secured credit card comes with an affordable interest rate because the bank account, into which the cardholder deposits money, secures the credit card and keeps the bank safe in case the cardholder becomes delinquent or defaults on credit purchases.
However, anyone serious about improving their credit history and credit score will not benefit from missing payments on a secured credit card. With a secured credit card, and the bank account that secures the card, anyone who misses payments on credit card charges will not only hurt their credit history and score but they will lose money from the account securing their card.